No. That is not true. This playback rate is the setting the player program will use to display the available frames. The "Actual Capture Rate" is only for informational purposes. "Missing" frames are "repeated" via the keyframe technology to fill in the "missing" frames so that the intended playback rate that you had set remains in sync. But if you set the capture rate too slow, it will try less hard, and you'll see your "Actual Capture Rate" suffer accordingly.

Nick suggests in the FAQ it is somewhat useful to find out what your computer's maximum actual frame rate might be by setting the "Playback Rate" setting very high - like 100-200 via the slider - and then observe what your computer actually can pull off when pushed this hard. I deem this only somewhat useful because ultimately you need to set the Video Options at combinations that multiply to 1000 in the CFE and PBR so that when using MCI your audio will stay in sync. Also, when you push your computer too hard, it starts fighting with the program you are recording for resources, so that program starts to lag, and you get strange things happening as the memory plays its shell game with the available resources!

So, most people have reported the above settings to be good ones for those two purposes, rendering smooth recordings with the least lagging for either program.

I know you suggested two above, but what are the difference between the two and which one is better? Ignoring the compression, which one outputs the very best quality? Is there a different codec you recomend for getting the highest quality of any codec that works with CamStudio?